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GLOBAL BUSINESS AND REFUGEE CRISES | A FRAMEWORK FOR SUSTAINABLE ENGAGEMENT

GLOBAL BUSINESS AND REFUGEE CRISES A FRAMEWORK FOR SUSTAINABLE ENGAGEMENT CINDY HUANG SEPTEMBER 2017

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ABOUT This report has been developed collaboratively, drawing on insights from two workshops, expert consultations, and research by a team at the Center for Global Development (CGD). Cindy Huang, senior policy fellow at CGD, is the lead author and co-directed the research team. Jeremy Konyndyk codirected the research team, provided invaluable thought leadership, and is a contributing author. Kate Gough, Asad Sami, and Nicole Cassou are members of the research team and contributing authors. Kate also served as the research and production coordinator for the report. Emily Schabacker provided editorial support. CGD is an independent, nonpartisan, nonprofit policy research organization dedicated to reducing global poverty and inequality. CGD is partnering with the Tent Foundation to identify sustainable ways for global businesses to help address refugee crises. We wish to thank the participants of the two workshops convened as part of the research, as well as others who provided thoughtful input, comments, critiques, and suggestions: Masood Ahmed, Meriem Ait Ali Slimane, Alex Aleinikoff, Nazanin Ash, Hugh Bosely, Ann Mei Chang, Nadine Chehade, Heidi Christ, Scarlet Cronin, Susan Din, Kevin Fath, Yashmin Fernandes, Alan Gelb, Sarah Glass, Raquel Gomes, Grant Gordon, Ziad Haider, Jeremy Haldeman, Jennifer Holt, Sara Ibrahim, Pablo Illanes, Erina Iwami, Sasha Kapadia, Vicky Kelberer, Gary Kleiman, Emre Eren Korkmaz, Nancy Lee, Paula Lynch, Ammar Malik, Annie Malknecht, Gideon Maltz, Jana Mason, Bryanna Millis, Emily Morgenstern, Mona Luisa Niebuhr, Sayre Nyce, Megan O’Donnell, Kate Phillips-Barrasso, Michael Pisa, Lauren Post, Krishnan Raghavan, Radha Rajkotia, Vijaya Ramachandran, Joe Read, Paul Reid, Alexandra Ricks, Euan Ritchie, Herrick Ross, Elina Sarkisova, Mitzi Schroeder, Kirsten Schuettler, John Speakman, Kathryn Stahlberg, Catherine Sykes, Joan Timoney, and Krista Zimmerman. All errors are our own. CGD is grateful to the Tent Foundation for support of this work.

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CONTENTS

EXECUTIVE SUMMARY

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INTRODUCTION

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SECTION 1 INCLUDING REFUGEES IN HIRING AND SUPPLY CHAINS

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SECTION 2 IMPACT INVESTING FOR REFUGEE LIVELIHOODS

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SECTION 3 DEVELOPING GOODS AND SERVICES TO MEET REFUGEE NEEDS

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CONCLUSION AND RECOMMENDATIONS

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ANNEX

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NOTES

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EXECUTIVE SUMMARY

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Global businesses can make unique and valuable

• Developing goods and services to meet refugee

contributions to refugee response by engaging

needs. In targeted areas such as financial services,

refugees not as aid recipients, but as

global businesses can potentially reach refugees

employees, producers, investees, and customers.

as customers by adapting their goods, services, and delivery systems.

The position of global enterprises as market leaders, policy influencers, and innovators gives them

Global businesses should partner with host

distinctive capacities for engagement and advocacy

governments and humanitarian and development

that do not exist within the traditional refugee

actors to advance policy reforms and programs that

response community.

enable success, to ensure that solutions meet the needs and protect the rights of refugees. And, to

By including refugees in their core business activities, global enterprises can achieve social impact, gain reputational benefits, and build brand loyalty, while

promote sustainability and local support for their efforts, global companies should engage in ways that benefit both refugees and host communities.

maintaining or enhancing their bottom line. Global businesses and their partners should Global businesses can sustainably increase their engagement with refugees by: • Including refugees in hiring and supply chains. Global companies can advance their businesses and improve refugees’ capacity for self-reliance by creating targets

collaborate to develop resources and mechanisms that increase effectiveness and accountability, including standards for ethical conduct, diagnostic tools for identifying core business opportunities, country-level facilitation platforms, and a learning and evaluation center.

or incentives around hiring refugees as employees, sourcing from refugee-owned businesses, and sourcing from businesses that employ significant numbers of refugees. • Impact investing for refugee livelihoods. Global investment firms can improve refugee livelihoods and achieve financial returns by investing in companies that hire and source from refugees, refugee-owned small and medium-sized enterprises, social enterprises, and development impact bonds.

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INTRODUCTION

Photo credit: RefugePoint

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SUSTAINABLE RESPONSES TO THE WORLD’S PROTRACTED REFUGEE CRISES MUST DO FAR MORE TO ENGAGE REFUGEES AS EMPOWERED AGENTS, RATHER THAN AS PASSIVE RECIPIENTS OF AID.

This report highlights ways that global multinational enterprises can use these distinctive capacities to effectively and sustainably support refugee livelihoods and self-reliance.2 It focuses on opportunities in developing countries, where more than 85 percent of the world’s refugees live and where governments have lower capacity and fewer resources to respond to refugee needs.3 Given the scale of need among both refugees and host communities, local, national, and

Realizing this vision requires new partnerships and

regional businesses must be central players in a broad

approaches, particularly given today’s realities of forced

and sustainable approach. At the same time, global

displacement. Refugees have been displaced for an

businesses have an important and catalytic role to play

average of 10 years; for those displaced more than five

given their expertise, assets, and networks. They can

years, the average jumps to over 21 years. The 22.5

support and enable refugees to realize their economic

million refugees around the world seek self-reliance, the

potential—to the benefit of refugees, host countries, and

ability to provide for themselves and their families. This

the international community.

requires access to basic public services, such as health and education, and opportunities for safe and decent work—an evolving challenge now that more than 60 percent of refugees live in urban areas outside of camps.1 Businesses have a vital role to play.

THE EVOLVING ROLE OF GLOBAL BUSINESS An increasing number of global businesses seek profit alongside social and environmental outcomes, including helping to meet humanitarian needs. Over the last decade or so, their engagement has begun

Global businesses can make unique and valuable

to evolve from philanthropy and corporate social

contributions given their position as market leaders,

responsibility (CSR) to a spectrum of approaches that

policy influencers, and innovators. They can engage

engage their core business (see Box 1).4 As part of CSR,

refugees as employees, producers, investees, and

businesses typically donate money or in-kind goods

customers, demonstrating the positive returns from

to charitable organizations. For example, corporations

the economic inclusion of refugees. By creating

have conducted fundraising campaigns and donated

business models that are profitable while delivering

basic items, such as soap and clothes. In addition to

social impact, they can motivate other businesses and

philanthropic motives, businesses are responding to

investors to do the same. They can also leverage their

their customers’ brand consciousness.

networks and relationships to advocate for policies that improve outcomes for refugees, host communities, and businesses. Finally, global companies can use their technical and innovation capacities to help meet refugee needs.

Companies are increasingly looking for ways to leverage their core business to achieve humanitarian impact. This falls on a spectrum from deploying their technical expertise—such as volunteering logistics staff to advise

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on the delivery of food and medicine, or data analytics

This shift to engaging through core business activities—

that help identify humanitarian needs and trends—to

and the energy among global businesses to help

directly offering employment and business opportunities

respond to historic levels of displacement—creates new

to crisis-affected populations. These approaches

possibilities for partnerships to address refugee crises.6

respond to employees’ desire to contribute through their

While donations can be helpful, they are often one-off

work, greater attention to sustainability and measurable

or periodic. In-kind contributions can also carry heavy

social impact, and the desire to understand new markets.

transaction costs, such as the cost of transporting goods

A select number of companies see opportunities to

and staff time needed to translate corporate expertise

reach crisis-affected populations as new customers for

into practical impact. Engagement that is part of core

products and services. More broadly, global companies

business, rather than applying core business assets to

in refugee-hosting countries have a strategic interest

social challenges, offers greater opportunity to achieve

in contributing to efforts that mitigate the potentially

sustainable and scalable impact.

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destabilizing consequences of a refugee influx. BOX 1 | IKEA: FROM CORPORATE SOCIAL RESPONSIBILITY TO CORE BUSINESS In Jordan, IKEA’s engagement in the refugee

enterprise that produces a lightweight, modular

response has developed from corporate social

shelter. In 2017, IKEA introduced a partnership with the

responsibility (CSR) to core business production

Jordan River Foundation to employ Syrian refugees

centers supporting sustainable livelihoods for both

and Jordanians to make hand-woven rugs, textiles,

refugees and their host communities. At the outset

and other products for IKEA stores worldwide. IKEA

of the Syrian crisis, IKEA engaged through CSR

will start by employing 200 refugees and Jordanians

donations, including initiatives to bring renewable

and will sell their artisan products in regional IKEA

energy to refugee camps and to provide temporary

stores after one year, and in global stores within five

homes to more than one million Syrian refugees and

years.

other populations through Better Shelter, a social

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THE VALUE-ADD OF GLOBAL BUSINESS Global businesses can build on their distinctive capacities, which do not exist within the traditional refugee response community, to play a significant role in responding to refugee crises. While they are sometimes small players in terms of market share or employment numbers relative to regional and local businesses, they can have an outsized influence on several dimensions as:

• Market leaders — Global businesses have diverse

• Innovators — Global companies invest in and drive innovation that can sometimes be adapted to help

and far-reaching activities that allow for designing

meet refugee needs. There are areas where new

and testing different models for engagement with

technologies, business models, or distribution

refugees. Based on their experience and example,

systems can enable services to reach refugees and

global companies can help make the case to host

other vulnerable populations. For example, mobile

governments for the economic inclusion of refugees.

money has facilitated the scaling up of humanitarian

By virtue of their extensive supply chains and position

cash transfers, extended payments and savings

as market leaders, they can also influence and

services, and reduced the costs of international

incentivize global, regional, and domestic businesses

remittances for many refugees.

to follow suit. • Policy influencers — Host governments value their partnerships with global businesses—not only for the trade, investment, and services they offer but also for their expertise and insight. Global businesses can bring attention to the barriers they face in engaging refugees as employees, suppliers, and business partners. These may include limits on the right to work and own property and lack of access to financial services. In partnership with the multilateral development banks and other key actors, global companies can support policy reforms that improve the business environment and enable refugees to become net economic contributors to their host countries. Many of the policy changes, such as simplifying the work permit process for refugees, would benefit regional and domestic companies as well.

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Building on these comparative advantages and the core capacities of global businesses, this report highlights the potential for increased business engagement with refugees in three areas:

• Including refugees in hiring and supply chains.

• Developing goods and services to meet refugee

Global companies can advance their businesses

needs. Global businesses can potentially reach

and the self-reliance of refugees by creating targets

refugees as customers by adapting their goods,

or incentives around hiring refugees as employees

services, and/or delivery systems. This should be

directly or through subsidiaries and franchises,

done in partnership with humanitarian actors, who

sourcing from refugee-owned businesses, and

understand refugee needs and challenges. While

sourcing from businesses that employ significant

many needs are more readily or appropriately met

numbers of refugees. Partnerships with government,

by the public sector or local businesses, there are

multilateral, and nongovernment actors will be

targeted areas—such as financial and telecom

important to identify and address constraints, for

products and services—where global businesses

example through programs around skill development,

have shown potential to build their brand and/or core

access to credit, and meeting the quality and quantity

business by focusing on refugees and other crisis-

standards of global companies.

affected populations.

• Impact investing for refugee livelihoods. Global investment firms can improve refugee livelihoods and achieve financial returns by investing in companies that employ refugees or include them in their supply chains, refugee-owned small and medium-sized enterprises (SMEs), social enterprises that meet refugee needs, and development impact bonds. To help address the limited pipeline of investments, they can also develop platforms that identify, incubate, and scale promising ideas and businesses.

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Global businesses face a variety of policy and practical challenges in engaging refugees. Strong evidence shows that refugees become net economic contributors when they have sufficient rights, support, and opportunities.7 However, in most countries, refugees face significant restrictions on the right to work, own a business, or move about freely. They also face practical

wage impacts on host workers. In several cases, studies document how the arrival of refugees has ultimately led to occupational upgrading, where host workers move to jobs requiring greater specialization and native language skills, and thus better wages. However, whether the overall effects are positive depends largely on the policy responses and support provided, especially for host

barriers to realizing their rights, such as burdensome

workers who may be displaced.8

fees and procedures, and lack of transportation and

Despite significant challenges, there are existing and

childcare. Low levels of access to quality education limit the opportunities for working-age adults and the next generation. These de jure and de facto limits hamper both refugee livelihoods and the ability of global businesses to engage them. Companies also engage in the context of complex dynamics between refugees and host populations, who often also face steep economic challenges. Evidence

emerging opportunities for global businesses and their partners to sustainably advance the well-being of refugees and their host communities. As they do so, they can also collaborate to address longer-term policy and practical barriers to effective engagement. This report, written by the Center for Global Development in partnership with the Tent Foundation, offers a framework for developing and pursuing these opportunities.

shows that refugee inflows have small but varied job and

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SECTION 1

INCLUDING REFUGEES IN HIRING AND SUPPLY CHAINS

Photo credit: RefugePoint

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THE CENTRAL COMPONENT OF SELF-RELIANCE AND A MAJOR UNMET PRIORITY IDENTIFIED BY REFUGEES IS ACCESS TO SAFE AND DECENT EMPLOYMENT OR SELF-EMPLOYMENT.9

The potential benefits of well-designed employment and supply chain partnerships are significant. In addition to social impact and benefits to the company brand, evidence indicates that immigrants, including refugees, can increase productivity by offering complementary skills; in some cases, employers have also experienced substantially lower attrition rates among immigrant workers compared with native workers.10 Recognizing

As employers and buyers at the helm of extensive

the strengths of refugees, Starbucks committed to hire

supply chains that reach deep into local markets, global

10,000 refugees, largely in retail jobs, and is exploring

businesses can play a powerful role in creating demand

opportunities to employ them in both developed

for refugee labor, products, and services. Commitments

and developing countries. Hiring refugees can be

to support refugees should take place in the context of

transformative for those employees and their families,

broader initiatives that also benefit local communities,

but global companies tend to directly employ a relatively

which are often experiencing high unemployment, flat or

small number of workers in developing countries.

falling incomes, and other vulnerabilities. By increasing

Therefore, companies should also explore opportunities

local sourcing, global companies can often maintain

to engage refugees along their supply chains.

or reduce costs, while also creating new economic

Connecting refugee-owned or refugee-employing

opportunities for both refugees and host communities.

SMEs to global supply chains can grow their businesses

To increase the likelihood of impact and sustainability,

and increase their social impact. This is especially true

businesses should also engage in public-private

for refugee business owners who tend to hire other

partnerships and policy dialogue that support improved

refugees and can help to bring refugees into the formal

social and economic outcomes for refugees and host

sector.11 Refugees as entrepreneurs, such as small shop

communities, as well as broader reforms that improve the

owners, can also benefit large companies interested

business environment and facilitate inclusive growth.

in expanding their retail distribution systems to new

As part of broader initiatives to hire and supply locally,

markets.

global businesses can make commitments, including

Given the policy barriers refugees face, including

targets or incentives, around:

restrictions on their right to work and own businesses

• Hiring refugee employees directly or through subsidiaries and franchises • Sourcing from refugee-owned businesses • Sourcing from businesses that employ significant numbers of refugees

(see Box 2), identifying and developing concrete opportunities in the near term will require focused effort. Refugees and host populations will also need support to overcome practical constraints to employment and entrepreneurship, such as access to skill-building, apprenticeships, childcare, transportation, and jobsmatching services. Cultural and linguistic differences

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can be a barrier as well; refugee populations may

support to register, identify sourcing opportunities,

speak different languages from the host population,

and meet standards for quantity and quality. Global

possess different skill sets and levels of education than

companies should invest in programs and participate in

businesses require, or be unfamiliar with local cultural

policy dialogue that advances solutions to these barriers.

factors. Likewise, refugee businesses may require BOX 2 | RIGHT TO WORK: A RESTRICTIVE, COMPLEX, AND DYNAMIC LANDSCAPE In refugee-hosting countries in the developing world,

Overcoming the multiple barriers to create

prohibitions or limits on refugees’ right to work pose

opportunities for refugee self-reliance will require

a significant and often binding constraint to global

careful analysis and collaboration among public and

businesses’ engagement. Although there is no

private actors. Recent experience in Jordan illustrates

standardized assessment of such policies across

how the legal and regulatory environment can evolve,

countries, many studies document the restrictions

including through the engagement of international

and challenges posed by de jure and de facto

actors and businesses. A concessional loan from

barriers. Refugee right-to-work regimes are complex

the World Bank—as well as EU trade preferences

and vary greatly, from general bans on refugee work

designed to induce European investment in special

to sector and case-by-case exceptions. In rare cases,

economic zones in Jordan—presented the possibility

such as Uganda, refugees are given broad rights to

of 200,000 work permits for Syrian refugees. The

work that are similar to those of citizens.

effort has faced significant challenges, including

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complicated application processes and inadequate

Often, other laws and regulations—such as those

communication that left refugees hesitant to provide

restricting movement and ability to own property

their personal information and to formalize their

and register a business—limit refugee livelihoods

working status. So far only about 55,000 Syrian

opportunities. Refugees also face numerous practical

refugees have acquired work permits.13 Nevertheless,

challenges, such as cumbersome processes to apply

the program has succeeded in launching a broader

for work permits and prohibitive transportation costs.

dialogue that has generated important reforms, such

Most refugees work in the informal sector where

as streamlining the work permit process, opening

they receive lower wages and are more vulnerable

new sectors for refugee employment, and offering

to workplace abuse. This outcome reflects both

non-employer, non-position-specific work permits in

the difficulties and costs of obtaining legal work

the construction sector.14

and overall high rates of informality in developing countries. Women are often particularly vulnerable, including to sexual and gender-based violence, both at their jobs and when traveling to and from work.

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In designing initiatives to include refugees in hiring and

entrepreneurs to domestic, regional, and global supply

supply chains, several important issues require further

chains. Their experiences, tools, and networks can

research and exploration. These include developing

inform and support efforts to engage refugees.

methods for defining and validating whether a business is refugee-owned or refugee-employing, creating partnerships that effectively bring together public and private resources, structuring targets and incentives in ways that maintain or bolster core business objectives and competitive advantage, and ensuring the inclusion and protection of women and vulnerable populations. While there will be common lessons and best practices, many models and considerations will be specific to countries, sectors, and supply chains. There will typically be a broader range and number of opportunities to engage in middle-income countries and among refugees living in urban areas. However, keeping in mind the call of the Sustainable Development Goals to “leave no one behind,” global companies and their partners should explore possibilities across income categories and geographic areas. Businesses and their partners can learn from initiatives that seek to include more women-owned businesses, SMEs, and smallholder farmers in global supply chains. Common lessons include that new suppliers need education, training, mentorship, access to finance, and connections to global companies. Conversely, companies need to create internal buy-in, understand the local context and challenges, design tailored outreach and training, and adjust initial expectations as suppliers develop new processes to meet standards for quantity, quality, and speed. The intermediation and investment required have led to the growth of specialized organizations that help bring together supply and demand. For example, WEConnect identifies, educates, registers, and certifies women-owned businesses and connects them with multinational corporate buyers, and Building Markets connects local

PROMISING ENTRY POINTS To identify potential entry points for refugee inclusion in employment and supply chains, we conducted an initial review of the 20 top refugee-hosting countries, covering 15.6 million of the world’s 22.5 million refugees (see Annex). The list excludes developed countries and those where conflict, sanctions, or other factors would significantly limit global business opportunities. Most of the countries are in the Middle East and Africa, with a small number in Asia and Latin America. Among these 20 countries, 20 percent of refugees live in low-income countries, with 49 percent in lower middle-income and 31 percent in upper middle-income countries. While there are potential opportunities to explore in each country, the scale and range will differ based on income level, the location of refugees, global business presence, policy environment, the composition of the economy, and other factors. Our initial analysis considered the types of global businesses present in these countries or linked to them through supply chains and their capacity to generate employment or supply chain opportunities. We also examined sectors where the right to work is less constrained. Nevertheless, we did not exclude countries or sectors based on restrictive right-to-work environments because these policies are subject to change and exceptions, including through the policy engagement of businesses and their partners. Given the complexity of supply chains, much deeper analysis conducted in partnership with global businesses is required to validate and explore these entry points, assess potential fit with refugee skills, background, and location, identify country-specific opportunities, and evaluate the legal and regulatory environment.

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Based on our preliminary analysis, we identified the

BOX 3 | SAFEWAY: INCLUDING REFUGEES ALONG THE SUPPLY CHAIN

following types of companies as promising entry points for engaging refugees in employment and supply chains:

The Jordanian branch of Safeway, Inc., the

• Consumer product companies — Many of the

American supermarket chain, has integrated a

global businesses present in top refugee-hosting

local Syrian-owned business into its supply chain.

countries make consumer goods, such as food and

The Andalus Dairy Factory, operated by the Cattle

beverage products, clothes, toiletries, and cleaning

Farmers Association in Irbid, was taken over by a

products. Textile and garment companies may be

Syrian investor in 2013 and saw enough growth

particularly promising as several global brands supply

to sign a contract with Safeway after USAID

from refugee-hosting countries. Consumer product

facilitated a connection.15 The factory agreed

companies have production facilities and broad

to supply two of Safeway’s stores in Amman,

supply and distribution networks in-country. They may

with plans to expand to the Safeway in Zaatari

have opportunities to hire refugees and increase and

camp.16 The Safeway in Zaatari is also a source

diversify local sourcing to include refugee-owned and

of employment opportunities, with a staff of both

refugee-employing businesses, from buying their raw

Jordanian nationals and Syrian refugees who

materials to engaging them in processing, assembly,

have been trained in new skills for employment.17

packaging, and logistics. Refugee-owned shops can also be an avenue for product distribution to new places and customers.

• Retailers — Global retailers have potential to employ refugees and source goods and services from

• Agribusinesses — Companies with products linked

refugee-owned and refugee-employing businesses.

to agriculture and agribusiness may find opportunities

Major supermarket chains source and sell products

to engage refugees, especially in countries where

all over the world and also require services in-country,

a greater proportion of refugees are located in rural

from stocking shelves to transportation. Some retailers

areas and/or have experience in the sector. As with

may also reach customers that value social impact and

consumer products, companies can also explore

artisan products made by refugees (see Box 4).

ways to include refugees along the supply chain, for example in extension services, processing, waste management, and transportation (see Box 3).

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BOX 4 | MADE51: BRINGING ARTISAN PRODUCTS TO GLOBAL MARKETS

• ICT companies — Work in information, communications, and technology (ICT) is limited but growing in developing countries. With high-quality training and job-matching services, refugees and

The MADE51 initiative, led by the UN Refugee

host communities can be successfully placed in ICT

Agency (UNHCR), supports refugee artisans by

jobs. There are also opportunities for refugees with

providing market access through connections

lower skill levels to work in IT/BPO (business process

with crafts-based local social enterprises.18 Local

outsourcing) companies that run call centers, process

social enterprises agree to add a refugee product

data, and manage back-office functions such as

line to their operations, and MADE51 supports

payroll (see Box 5).

these efforts through marketing and branding opportunities, which help the supporting social

BOX 5 | OPPORTUNITIES FOR REFUGEE WORK IN ICT

enterprise expand its sales of the refugee product line. By increasing the market reach of refugee artisans, MADE51 develops more sustainable

New partnerships are emerging to link refugees

livelihoods for refugees while supporting local

to ICT and ICT-enabled work. ReBoot KAMP

social enterprises. In Burkina Faso, Malian artisans

(RBK) in Jordan, for example, runs an accelerator

who fled as refugees were able to transform their

that trains refugee and local software engineers

traditional tradecraft into a sustainable livelihood

and helps place them in local and remote jobs,

source. UNHCR is working with the West African

including at multinational enterprises. RBK

social enterprise Afrika Tiss to build the business

reserves 60 percent of its training spots for female

and technical aspects of the artisanal work,

participants, engaging in robust recruitment

attaining wider market exposure with orders sent

efforts to meet this target.20 The International

internationally, including to the United States,

Rescue Committee and Western Union partnered

Denmark, Japan, Norway, and Switzerland.

to test new models for livelihoods generation

Through UNHCR, MADE51 is developing

for refugees and vulnerable Jordanians,

partnerships with global retailers to expand the

specifically looking at BPO. Initial results from a

reach of the products.

rapid prototype of “impact sourcing”—BPO for vulnerable populations—indicated both Syrians

• Franchises —Franchises such as fast food and

and Jordanians have the necessary skills and

delivery companies may offer opportunities for

motivations to complete assignments successfully.

refugee employment. In the case of hotel franchises,

Scaling such opportunities will require building a

refugees or businesses that employ them may be well

demand pipeline, clarifying the regulatory context

positioned for contracts to supply goods and services

on contract work, and improving connectivity.21

(e.g., cleaning and maintenance).19

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Across sectors and companies, ICT advances have

some top refugee-hosting countries, and others may

enabled the rapid growth of the on-demand or gig

be moving into the Middle East region in part to position

economy. It is widening space for refugee work in areas

themselves for future reconstruction work in Syria and

including coding, design, catering and food delivery,

Iraq. For these companies, hiring refugees from those

translation, and BPO services. While the gig economy

countries could help bolster their competitive advantage.

includes both in-person and remote work, initial research

There are also potential opportunities in manufacturing,

points toward greater benefits and sustainability within

such as the automotive industry in South Africa and

the local economy. For refugees with the necessary

Turkey. Further country analysis and consultations

computer, language, and other skills, remote work

with global companies are required to explore these

(whether gig or part- or full-time) is promising because

opportunities and identify additional ones.

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it enables access to an exponentially larger job market.

Opportunities that are not directly linked to the

While ICT-enabled work opens exciting new possibilities,

production of a company’s goods and services could

lack of reliable electricity, mobile, and internet services

be a stepping stone for refugee-owned and refugee-

is a significant barrier, especially for refugees outside

employing businesses. Global companies could

of major cities. And while the lack of clarity on policies

incorporate refugee SMEs when they contract for goods

related to freelance and gig work offers flexibility, it

and services related to their offices and factories, such as

also poses risks because the legal and regulatory

waste management, catering, back office processes, and

environment or enforcement could shift quickly.

office supplies. As these companies grow, they could

Our preliminary review identified additional potential

expand to goods and services tied to core business.

entry points based on specific country contexts. For

Similarly, public procurement by governments, donors,

example, businesses in the extractive industries, such

multilateral, and nongovernmental organizations can

as oil and gas, dominate some refugee-hosting regions,

be designed to build the capacity and size of refugee

such as Kurdistan in Iraq, Chad, Uganda, and South

enterprises.

Africa. Global construction companies are present in 23

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WAY FORWARD Delivering results for refugees and host communities

argument that expanding refugees’ right to work and

through inclusive hiring and supply chains will

opportunities in the formal sector can attract investment

require collaboration among global businesses, host

and benefit the local economy.

governments, and humanitarian and development actors. Together, they must identify promising opportunities and constraints—and seek to overcome hurdles through investment, partnership, and policy reform. They must develop a nuanced understanding of the challenges that local suppliers face and design concrete incentives that align profit and social goals.

Successful platforms and initiatives will support both refugees and host communities, while also addressing the specific constraints and vulnerabilities refugees face. Depending on factors such as their gender, age, education level, and disability status, refugees may benefit from different types of opportunities and require various types of assistance. Special consideration must

A key challenge will be taking a long-term view toward

be given to providing safe and decent work conditions

developing the pipeline of refugee skills and businesses

and respecting the rights of refugees, with global

and sustainable demand for their labor, goods, and

businesses upholding international standards and

services. In addition, there is a need for platforms that

proactively engaging throughout their supply chain. This

help match supply and demand, such as the IRC’s hub

should include robust efforts to prevent child labor and

in Jordan that will match Jordanians and refugees with

sexual harassment and abuse. These actions should

firms and provide the necessary support to individuals in

contribute to broader efforts to improve human rights

getting to work. Similar platforms are needed to support

for citizens and noncitizens alike. Global businesses

refugee-owned and employing businesses and match

and their partners should also focus on measures that

them with buyers, particularly in helping them to meet

increase the inclusion and empowerment of women and

standards of quality and scale. Finally, global businesses

ensure that their efforts are adapted to the social and

should participate in policy dialogue, bolstering the

cultural context.24

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SECTION 2

IMPACT INVESTING FOR REFUGEE LIVELIHOODS

Photo credit: Tent

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IN 2016, THE UN REFUGEE AGENCY REPORTED A $3.1 BILLION BUDGET GAP FOR MEETING REFUGEES’ BASIC NEEDS, BUT SIGNIFICANTLY MORE FINANCING IS REQUIRED TO ENABLE REFUGEE SELF-RELIANCE AND ACHIEVE SUSTAINABLE SOLUTIONS.25

creating a foundation for other capital to flow. The Syrian International Business Association seeks to mobilize the Syrian diaspora for impact investing and could support economic opportunities in frontline states and, eventually, Syria itself. Impact investors can capitalize on refugees’ entrepreneurial talent and investment resources. For example, a recent study found more than 10,000 Syrianowned businesses in Turkey, each employing 9.4 people

Impact investments—investments in companies, organizations, and funds with the goal of generating social and environmental impact alongside financial returns—can play a role in responding to the refugee crisis. The Global Impact Investing Network’s 2017 Annual Impact Investor Survey reports nearly $114 billion in impact assets. While most impact investors seek risk-adjusted, market-rate returns, a subset offers patient or long-term capital or expectations of belowmarket returns, extending favorable terms to achieve social impact.26 Some impact investors are stepping up to respond to the refugee crisis, such as George Soros,

on average. And since 2011, Syrians have invested more than $330 million in the Turkish economy.28 This suggests the resources and returns that could be unlocked with greater support and investment, although the scale will differ between low- and middle-income countries. Some evidence shows that immigrants bring unique skills and experiences that support entrepreneurial success. These include experience with, and knowledge of, a set of products and services that have been developed and successfully brought to market in a different setting, bolstering immigrants’ ability to recognize new business opportunities.29

who pledged up to $500 million in private investment to

However, many challenges limit the engagement of

address the challenges of migrants, including refugees,

impact investors—especially those at global investment

and their host communities.

firms—in the refugee response. Given that refugees

Diaspora members can play a critical role in catalyzing business investment in frontline states hosting refugees and, when conditions permit, their countries of origin. For example, the Somali diaspora has invested in hotels, real estate, and transport in Kenya’s formal sector, generating jobs and economic activity for Somalis and Kenyans.27 The Somali diaspora uses networks to mobilize capital that would likely not be otherwise available given the level of risk and lack of collateral. The diaspora is also investing in Somalia, helping to rebuild the country and

likely face greater barriers than other investees (e.g., smaller networks, language barriers, limited rights to work and own property, and less familiarity with navigating bureaucracy), they need significant support and may also require more favorable terms from investors, such as longer repayment timelines and lower expected returns. Programs and platforms that build the investment pipeline, promote related policy reforms, and match investors with potential investments are needed. And given the effort and expense required to validate benefits to refugees, there may be a role for

23


a body that does so, similar to fair trade and women’s

• Social enterprises that benefit refugees: There is a

business certification. Significant progress in these areas

portfolio of social enterprises emerging to respond

is needed before refugee-related impact investing can

to the refugee crisis—to support both refugee-led

achieve scale and attract global investment firms that

enterprises and enterprises that meet refugee needs.

typically seek returns that are closer to market rates.

Overall, these enterprises are not yet producing financial returns to investors, but rather using the

PROMISING ENTRY POINTS

revenue to grow and achieve sustainability (see

Impact investors seeking financial returns and refugee

Box 6). However, some show promise of generating

outcomes should consider investing in the following

financial returns based on existing and potential

areas, as well as in partnerships that strengthen the

revenue streams.

pipeline for these investments:

• Impact bonds for refugees: Development or

• Companies that support refugee employment and

humanitarian impact bonds offer investors the

businesses: As described in Section 1 companies can

opportunity to provide upfront capital for rigorously

create targets and incentives to include refugees in

measured projects and to earn returns if outcomes

their hiring and supply chains. Impact investors can

are achieved. The returns are from an outcome

invest in regional, national, and local companies that

payer, such as a donor or government, that produces

make such commitments. This could include a focus

greater results and efficiency within a pay-for-success

on increasing the scale and sustainability of business

scheme. Employment-related bonds are particularly

activities that directly engage refugees—such as

promising because they can save funds over time by

the business units that hire refugees and purchase

decreasing refugee reliance on assistance. One is

from them. In addition, they can invest in established

currently under development in Jordan and Lebanon

SME lenders to help bring their financial services to

and aims to launch next year. It will provide important

refugee-hosting communities.

lessons on the effectiveness of specific livelihoods interventions and the overall potential of impact bonds

• Refugee-owned small and medium-sized enterprises: Investing in refugee entrepreneurs

to increase refugee self-reliance.

around the world will have a multiplier effect because refugee business owners tend to hire other refugees. These SMEs also benefit the local economy because they employ host community members and increase market activity. Investing in refugee-owned SMEs in developed countries also benefits refugees in developing countries given the large flows of remittances sent to their networks.

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BOX 6 | SOCIAL ENTERPRISES ON THE RISE

WAY FORWARD Identifying and developing the pipeline of potential

A growing number of social enterprises are

investments is critical to facilitating impact investing

responding to refugee crises. They include a

for refugee livelihoods. Building Markets has created

wide range of businesses, such as upcycling (use

a network of refugee-led SMEs in Turkey and Lebanon

of waste materials to create products of higher

that could provide a starting point for impact investors

value), microfinance organizations, low-cost job

interested in those countries. Over time, platforms can

training and online educational programs, and 3D

provide insight into types and readiness of potential

printing of prosthetics. For example, Kiva’s partner

investments, scale and timeline of returns, policy

Al Majmoua has developed a group loan product

environment, and more. They could also support larger

for mixed groups of Syrians and Lebanese,

impact investors who may want to invest in funds

increasing access to finance and promoting

that seek and manage smaller investments. Finally,

social cohesion. NakivArt is a social enterprise

expanding the availability of de-risking tools for refugee-

in Uganda’s Nakivale refugee settlement, where

related investments, such as political risk insurance,

youth produce crafts and art that is sold to fund

first-loss capital, and loan guarantees, could help unlock

therapeutic art training. These social enterprises

additional private capital.

share a dual-hatted mission of helping refugees while earning revenue for scale and sustainability. They are incubated and supported by a growing number of labs, accelerators, and maker spaces, such as the two FabLabs in Jordan and the Social Innovation Academy in Uganda.

25


SECTION 3

DEVELOPING GOODS AND SERVICES TO MEET REFUGEE NEEDS

26


THERE ARE LIMITED BUT PROMISING OPPORTUNITIES FOR GLOBAL BUSINESSES TO GROW THEIR CUSTOMER BASE BY ADAPTING THEIR PRODUCTS AND SERVICES TO REFUGEES AND OTHER CRISIS-AFFECTED POPULATIONS.

More fundamentally, many basic services, such as water and electricity, are provided primarily through aid agencies in camp settings or public utilities in urban and other non-camp settings. Where refugees purchase goods and services on the private market, such as food and shelter outside of camps, regional and domestic companies are dominant. And where there is a strong mix of public and private provision (e.g., health and education in some countries), the sectors are heavily regulated in ways that limit global business presence

Opportunities are emerging in specific sectors, such as

in direct service delivery. In these contexts, increasing

finance and telecoms, where global companies have

refugee access focuses on cash transfers and/or

some distinct advantages. Market leaders that make

subsidies through public and private channels, as well as

concerted efforts to serve refugees as customers not

adapting and supplementing services to meet refugee

only meet individual needs but can help demonstrate

needs through assistance programs.

the benefits of engaging refugees as customers to domestic and regional businesses. These efforts can also help undermine prejudice or assumptions about the transience of refugees that can lead to suboptimal market provision of goods and services.31

PROMISING ENTRY POINTS Despite these limitations on global business provision of goods and services to refugees, there are targeted areas of opportunity in financial and telecom products and services. Because these sectors tend to operate under

Nevertheless, overall opportunities for global businesses

significant and complex regulations, global companies

are limited because the number of refugees is still

may identify openings through partnerships with local

relatively small compared with the markets that global

companies. Partnerships with humanitarian actors are

businesses seek. And given additional barriers to

also critical for understanding refugee needs, context,

reaching refugee populations (e.g., language barriers

and challenges, as well as for co-designing solutions that

and restrictions on movement), refugees are often not an

create value both for businesses and for refugees.

easy starting point for engaging “base of the pyramid” consumers. Companies that can develop business models to reach the larger population affected by conflict and crisis, such as the 200-plus million people affected by natural disasters each year on average, may have greater opportunities.32

People in many developing countries have limited access to financial services, which makes it more difficult and costly to conduct payments, receive remittances, and access savings, loan, and insurance products.33 Similarly, many have relatively low rates of mobile and

27


internet connectivity, which also limits access to financial

initiatives in partnership with aid organizations,

services such as mobile money. While this reflects

including a digital voucher platform, prepaid debit

broader constraints on supply and demand sides,

cards that can be used at ATMs and wherever

refugees often face additional challenges. In the case

Mastercard is accepted, and fund distribution via

of financial inclusion, a principal barrier is that refugees

mobile phones. In addition to benefits such as greater

often lack the documents and information necessary

flexibility, security, and efficiency for implementing

34

to comply with customer due diligence requirements.

agencies, these initiatives increase brand awareness

35

Refugees also tend to be employed in the grey economy,

among refugees and other crisis-affected populations

preventing them from documenting their economic

who may be future customers of their other credit,

activities to build a credit history or receive a formal

debit, prepaid, and commercial products.

loan. They are often caught in a negative cycle in which

• Telecommunication services: Increasing access

barriers to legal employment and entrepreneurship

to mobile connectivity also presents potential

undermine access to financial services that help

opportunities for global businesses, including as a

households build assets, mitigate financial shocks, and

pathway to mobile financial services. For example,

make productive investments, and vice versa.

the telecom company Orange has built infrastructure

Given these gaps in access to financial and telecom

near refugee settlements in Uganda to promote

services, global businesses in these sectors may find

its international dialing services, SMS banking, and

opportunities to expand their customer base among

mobile money offering.36 As economies become

refugees:

increasingly digital, there could be a business case for similarly extending internet connectivity to reach new

• Financial products and services: To help overcome

customers.

barriers to financial inclusion, global companies, governments, and their partners are exploring ways

In addition, global businesses can help forge digital

to leverage new technologies—such as biometric

solutions that support refugees, such as mobile

identification, mobile money, digital wallets, and

applications. For example, Airbnb is providing its platform

new credit scoring approaches—to meet the needs

to match refugees with offers of free housing. Pearson,

of refugees, grow their customer base, and spark

a global learning company, created a math learning app

innovation. Building on earlier innovations focused

that will be used in Jordan with the support of Save the

on immediate needs, such as emergency cash

Children in-school programming. These application-

transfers, businesses are partnering with humanitarian

based services can be adapted and sustainably offered

organizations to grow the portfolio of products

to refugees. While these solutions do not generate profit,

and services available to refugees. For example,

they build brand value while incurring negligible or zero

Mastercard has developed a range of humanitarian

costs to reach additional people.

28


WAY FORWARD Even in these promising areas, global companies face challenges around market size, complex policy environments, and a lack of information on refugee needs and preferences. In many instances, the business case will be stronger for domestic and regional businesses that benefit from local context, experience, and relationships. However, as the examples above suggest, there are targeted opportunities for global companies to build their customer base and/or brand by reaching refugees and other crisis-affected populations. Global companies in finance, telecom, and other sectors should consider exploring opportunities to reach refugee customers, including through partnerships with domestic and regional businesses. Regardless of the sector, product, or service, the key is for businesses to work closely with refugees and humanitarian actors to jointly analyze the context and create solutions. Companies can also play an important role in coalitions seeking policy changes that expand access to goods and services. For example, in the case of financial inclusion, policy measures such as tiered or simplified customer due diligence and clear agent and e-money regulations could benefit businesses, refugees, and other excluded populations, such as the very poor.37

29


CONCLUSION AND RECOMMENDATIONS

30


THIS REPORT HIGHLIGHTS PROMISING AREAS WHERE GLOBAL COMPANIES CAN HAVE A SUSTAINABLE IMPACT FOR REFUGEES AND HOST COMMUNITIES.

by monitoring and support mechanisms, as well as tools to assess potential benefit and harm to host communities along with other social and environmental dimensions. • Diagnostic tools to identify core business opportunities — Global companies may wish to engage but lack the framework and tools to efficiently identify core business opportunities that

Whether through hiring and supply chain initiatives,

match refugee needs and skills. Diagnostic tools,

impact investing, or developing goods and services,

implemented in partnership with humanitarian

global businesses may have the opportunity to achieve

and development experts, could help companies

both financial returns and positive social impact for

determine where engagement may meet profit and

refugees. Designing and implementing such models

social goals. These tools could be refined for use by

will not be easy. While there are promising examples of

different types of companies and in different sectors.

core business engagement, it is still early, and we lack a rigorous evidence base. It will take time, investment,

• Country-level facilitation platforms — It is public and

and concentrated effort to show success and build the

private actors on the ground who will have the ability

business case.

to match business and investment opportunities with specific refugee employees and enterprises, and

Building on progress to date, we recommend that

help them overcome policy and practical barriers

global businesses and their partners—including host

to inclusion. Country-level platforms can convene

governments, donors, civil society, academics and

stakeholders to develop a shared understanding

researchers, multilateral organizations, and domestic

of each other’s needs and expectations, facilitate

and regional businesses—collaborate to develop the

partnership development, advance policy dialogue,

following resources and mechanisms: • Standards for ethical conduct — Refugees receive international protection because of their particular

and hold partners accountable to their commitments. • Learning and evaluation center — Building the evidence base on how to effectively engage refugees

vulnerabilities. A set of voluntary standards, supported

in core business activities requires investment in

by operational guidance and best practices, can

data collection and analysis, independent evaluation,

promote productive engagement between refugees

evidence reviews, and case study development.

and the private sector that is sensitive to refugees’

Knowing what works for refugees, host communities,

vulnerabilities and protects their rights. Among other

and companies is critical to building the case for

principles, they should include an affirmation of the

increased action. A learning and evaluation center

International Labour Organization’s Declaration

could coordinate and support these functions,

on Fundamental Principles and Rights at Work.

developing resources, best practices, and tools that

The voluntary standards should be accompanied

31


inform program design and implementation. Given

This report presents a framework for leveraging core

sensitivities around refugee and business data,

business activities to increase opportunities for refugee

the center could also partner with UNHCR, World

self-reliance and well-being. While recognizing the value

Bank, businesses, research institutions, and others

of the range of global business contributions, it proposes

to produce anonymized data and analysis that is

a greater focus on engagement that can generate

actionable, while rigorously protecting privacy and

sustainable social impact and demonstrate the business

proprietary data.

case for the economic inclusion of refugees. This could have profound implications for how host governments

Many global businesses have stepped forward to

and communities, domestic and regional businesses,

help respond to refugee crises. In a difficult political

aid agencies, and others engage refugees—not as

environment for refugees, their leadership is critical to

passive recipients of aid, but as important and dynamic

creating concrete opportunities for economic inclusion

contributors.

and elevating the need for attention, resources, and partnerships. Global businesses can likewise be critical voices for policy reforms that enable refugee selfreliance. While the tools and mechanisms recommended above can support engagement between refugees and the private sector writ large, global business leadership would provide vital momentum, resources, and visibility.

32


ANNEX TOP 20 REFUGEE-HOSTING COUNTRIES, EXCLUDING DEVELOPED COUNTRIES AND THOSE WITH LIMITED GLOBAL BUSINESS OPPORTUNITY TO ENGAGE REFUGEES38

COUNTRY

REFUGEES UNDER UNHCR MANDATE

Turkey

2,869,421

Jordan

685,197

Lebanon

1,012,969

Pakistan

1,352,560

REFUGEELIKE SITUATIONS

Palestinian Territories

PALESTINIAN REFUGEES UNDER UNRWA MANDATE

TOTAL

REFUGEES TO 1,000 INHABITANTS

GNI PER CAPITA

COUNTRY INCOME CLASSIFICATION

2,869,421

36.04

11,180

Upper-middle

2,175,491

2,860,688

88.44

3,920

Lower-middle

463,664

1,476,633

169.16

7,680

Upper-middle

1,352,560

7.01

1,510

Lower-middle

2,158,274

450.485

3,230

Lower-middle

2,158,274

Uganda

940,835

940,835

23.33

660

Low

Ethiopia

791,631

791,631

7.77

660

Low

Dem. Rep. of the Congo

451,956

451,956

5.67

420

Low

Kenya

451,099

451,099

9.55

1,380

Lower-middle

Chad

391,251

391,251

26.99

720

Low

Cameroon

348,672

375,415

15.69

1,200

Lower-middle

United Rep. of Tanzania

281,498

281,498

5.1

900

Low

Iraq

261,888

261,888

6.97

5,430

Upper-middle

Egypt

213,530

213,530

2.29

3,460

Lower-middle

India

197,851

197,851

0.15

1,680

Lower-middle

Rwanda

156,065

156,065

13.13

700

Low

Ecuador

60,524

42,324

102,848

6.28

5,820

Upper-middle

Malaysia

92,054

209

92,263

3

9,850

Upper-middle

South Africa

91,043

91,043

1.66

5,480

Upper-middle

Afghanistan

59,771

59,771

1.79

580

Low

Total

10,709,815

26,743

69,276

4,797,429

15,576,520

33


SOURCES 1.

Refugees under UNHCR mandate from UNHCR, “Global Trends: Forced Displacement in 2016,” UNHCR, June 2017, http://www.unhcr.org/5943e8a34; Refugee-like from UNHCR 2017: “This category is descriptive in nature and includes groups of persons who are outside their country or territory of origin and who face protection risks similar to those of refugees, but for whom refugee status has, for practical or other reasons, not been ascertained.”; Palestinian refugees registered by the UNRWA as of January 2017 in the Gaza Strip and the West Bank. UNRWA, “UNRWA In Figures,” UNRWA, June 2017, https://www.unrwa.org/sites/default/files/content/ resources/unrwa_in_figures_2017_english.pdf;

2. Refugees per 1,000 inhabitants from UNHCR 2017; Palestinian refugees per 1,000 inhabitants calculated using UNRWA 2017 and United Nations, Department of Economic and Social Affairs, Population Division, “World Population Prospects: The 2015 Revision” (medium fertility variant projection for 2016), United Nations, 2015, https://esa.un.org/unpd/wpp/; GNI per capita from World Bank, [live webpage] “GNI per capita, Atlas method (current US$),” World Bank, https://data.worldbank.org/indicator/NY.GNP.PCAP.CD; Income groups per World Bank classification for fiscal year 2018. World Bank, “World Bank Country and Lending Groups,” World Bank, June 2017, https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-bank-country-and-lendinggroups.

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NOTES 1.

While this report focuses on refugees, many of the same opportunities and challenges for global business engagement apply to the 40.3 million people who are internally displaced. Xavier Devictor and Quy-Toan Do, “How many years have refugees been in exile?” World Bank, September 2016 http://documents.worldbank.org/ curated/en/549261472764700982/How-many-years-have-refugees-been-in-exile; UNHCR, “Global Trends: Forced Displacement in 2016,” UNHCR, June 2017, http://www.unhcr.org/5943e8a34; World Bank, “Forcibly Displaced: Toward a Development Approach Supporting Refugees, the Internally Displaced, and Their Hosts,” World Bank, 2017, https://openknowledge.worldbank.org/bitstream/handle/10986/25016/9781464809385. pdf?sequence=11&isAllowed=y.

2. Global multinational enterprises are companies operating on a global scale that engage in foreign direct investment and own or control value-added activities in multiple regions. Here, we use global multinational enterprises interchangeably with global enterprises, global businesses, and global companies. In discussing impact investing, we also include global investment firms. Financial Times, [live webpage] “Financial Times Lexicon: Global Multinational Enterprises,” Financial Times, http://lexicon.ft.com/Term?term=global-multinationalenterprises. 3.

Sixty-three percent of refugees live in middle-income countries. Low- and middle-income countries together host more than 85 percent of the world’s refugees. UNHCR, “Global Trends: Forced Displacement in 2016,” UNHCR, June 2017, http://www.unhcr.org/5943e8a34.; World Bank, “Forcibly Displaced: Toward a Development Approach Supporting Refugees, the Internally Displaced, and Their Hosts,” World Bank, 2017, https://openknowledge. worldbank.org/bitstream/handle/10986/25016/9781464809385.pdf?sequence=11&isAllowed=y.

4.

Alexander Betts, Josiah David Kaplan, Louise Bloom, and Naohiko Omata, “Refugee Economies: Forced Displacement and Development,” Oxford University Press, November 2017.

5. Philippe Legrain, “Refugees & Migrants - An Opportunity For Humanity,” The B Team, Tent Foundation, and Open Political Economy Network, December 2016, https://issuu.com/the-bteam/docs/bteam_-_refugees_and_ migrants_repor. 6. The White House, “Fact Sheet on the Leaders’ Summit on Refugees,” The White House, September 2016, https://obamawhitehouse.archives.gov/the-press-office/2016/09/20/fact-sheet-leaders-summit-refugees. 7.

Philippe Legrain, “Refugees Work: A Humanitarian Investment that Yields Economic Dividends,” Tent Foundation, May 2016, http://www.opennetwork.net/wp-content/uploads/2016/05/Tent-Open-Refugees-Work_V13.pdf; William N. Evans and Daniel Fitzgerald, “The Economic and Social Outcomes of Refugees in the United States: Evidence from the ACS,” NBER, June 2017, http://www.nber.org/papers/w23498.

8.

For a review of the evidence, see Michael Clemens in Refugees Deeply. Michael Clemens, “The Real Economic Cost of Accepting Refugees,” Refugees Deeply, August 2017, https://www.newsdeeply.com/refugees/ community/2017/08/08/the-real-economic-cost-of-accepting-refugees; Michael A. Clemens and Jennifer Hunt, “The Labor Market Effects of Refugee Waves: Reconciling Conflicting Results,” National Bureau of Economic Research, May 2017, https://www.nber.org/papers/w23433; Ali Fakih and May Ibrahim, “The Impact of Syrian Refugees on the Labor Market in Neighboring Countries: Empirical Evidence from Jordan,” IZA, January 2016 (originally written 2014), http://ftp.iza.org/dp9667.pdf; Mette Foged and Giovanni Peri, “Immigrants’ Effect on

35


Native Workers: New Analysis on Longitudinal Data,” IZA, March 2015, http://ftp.iza.org/dp8961.pdf.; Ximena V. Del Carpio and Mathis Wagner, “The Impact of Syrian Refugees on the Turkish Labor Market,” World Bank [and Boston College], October 2016, http://bit.ly/2x77omj.; Markus Gehrsitz and Martin Ungerer, “Jobs, Crime, and Votes: A Short-Run Evaluation of the Refugee Crisis in Germany,” IZA, January 2017, https://papers.ssrn.com/sol3/ papers.cfm?abstract_id=2903116; Apurva Sanghi, Harun Onder, and Varalakshmi Vemuru, “In My Backyard? The Economics of Refugee and Their Social Dynamics in Kakuma, Kenya,” World Bank and UNHCR, December 2016, http://documents.worldbank.org/curated/en/308011482417763778/pdf/111303-WP-Kakuma-Report-Yes-in-mybackyard-December-2016-PUBLIC.pdf. 9.

Catherine Bellamy, Simone Haysom, Caitlin Wake, and Veronique Barbelet, “The lives and livelihoods of Syrian refugees: A study of refugee perspectives and their institutional environment in Turkey and Jordan,” Overseas Development Institute, February 2017, https://www.odi.org/sites/odi.org.uk/files/resource-documents/11343. pdf; Shelly Culbertson, Olga Oliker, Ben Baruch, Ilana Blum, “Rethinking Coordination of Services to Refugees in Urban Areas: Managing the Crisis in Jordan and Lebanon,” RAND Corporation, April 2016, https://www.rand.org/ pubs/research_reports/RR1485.html.

10. William N. Evans and Daniel Fitzgerald, “The Economic and Social Outcomes of Refugees in the United States: Evidence from the ACS,” NBER, June 2017, http://www.nber.org/papers/w23498; Philippe Legrain, “Refugees Work: A Humanitarian Investment that Yields Economic Dividends,” Tent Foundation, May 2016, http://www. opennetwork.net/wp-content/uploads/2016/05/Tent-Open-Refugees-Work_V13.pdf; Michael A. Clemens, “The Effect of Occupational Visas on Native Employment: Evidence from Labor Supply to Farm Jobs in the Great Recession,” IZA, January 2017, http://ftp.iza.org/dp10492.pdf. 11. Naohiko Omata, “Refugee livelihoods in the private sector: Ugandan case study,” Refugee Studies Center, University of Oxford, November 2012, https://www.rsc.ox.ac.uk/files/files-1/wp86-refugee-livelihoods-privatesector-uganda-2012.pdf; Oscar M. Sanchez Pineiro and Regina Saavedra, “Doing business in Ecuador,” Forced Migration Review, May 2016, http://www.fmreview.org/sites/fmr/files/FMRdownloads/en/solutions/sanchezsaavedra.pdf; Selen Ucak, “Another Side to the Story: A market assessment of Syrian SMEs in Turkey,” Building Markets, July 2017, http://buildingmarkets.org/sites/default/files/pdm_reports/another_side_to_the_story_a_ market_assessment_of_syrian_smes_in_turkey.pdf; Chmura Economics & Analytics, “Economic Impact of Refugees in the Cleveland Area: Calendar Year 2012,” Chmura Economics & Analytics [for Refugee Services Collaborative of Greater Cleveland], 2013, https://www.hias.org/sites/default/files/clevelandrefugeeeconomicimpact.pdf. 12. Mayada El-Zoghbi, Nadine Chehade, Peter McConaghy, and Matthew Soursourian, “The Role of Financial Services in Humanitarian Crises,” CGAP, April 2017, http://www.cgap.org/sites/default/files/Forum-The-Role-ofFinancial-Services-in-Humanitarian-Crises_1.pdf; International Labor Organization, “Access to work for Syrian refugees in Jordan: A discussion paper on labour and refugee laws and policies,” ILO, 2015, http://www.ilo.org/ wcmsp5/groups/public/---arabstates/---ro-beirut/documents/publication/wcms_357950.pdf; Anna Wirth, Cara Defilippis, and Jessica Therkelsen, “Global Refugee Work Rights Report,” Asylum Access and Refugee Work Rights Coalition, 2014, http://asylumaccess.org/wp-content/uploads/2014/09/FINAL_Global-Refugee-WorkRights-Report-2014_Interactive.pdf.

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13. Hamdan Yacoub, “Ministry of Labour’s Procedures dealing with Syrian Crisis in the Labour Market,” Jordan Ministry of Labour, August 2017, http://data.unhcr.org/syrianrefugees/country.php?id=107. 14. International Labor Organization, “Access to work for Syrian refugees in Jordan: A discussion paper on labour and refugee laws and policies,” ILO, 2015, http://www.ilo.org/wcmsp5/groups/public/---arabstates/---ro-beirut/ documents/publication/wcms_357950.pdf; International Labour Organization, “Work Permits and Employment of Syrian Refugees in Jordan: Towards Formalising the Work of Syrian Refugees,” International Labour Organization, 2017, http://www.ilo.org/wcmsp5/groups/public/---arabstates/---ro-beirut/documents/publication/wcms_559151. pdf; Cindy Huang and Nazanin Ash, “Refugee Compacts: Addressing the Crisis of Protracted Displacement,” Center for Global Development and International Rescue Committee, April 2017, https://www.cgdev.org/sites/ default/files/Refugee-Compacts-Report.pdf; International Rescue Committee, “In search of work: creating jobs for Syrian refugees,” International Rescue Committee, February 2017, https://www.rescue.org/report/search-workcreating-jobs-syrian-refugees. 15. USAID, “Jordanian small business becomes supplier to national supermarket chain,” USAID, September 2015, http://www.jordanlens.org/node/37. 16. USAID, “USAID LENS Quarterly Progress Report,” USAID [authored by FHI 360], July-September 2015, http://pdf.usaid.gov/pdf_docs/PA00M611.pdf. 17. Curtis Ryan, “Refugee Need and Resilience in Zaatari,” Middle East Research and Information Project, June 2014, http://www.merip.org/refugee-need-resilience-zaatari.; UNHCR, “Zaatari Refugee Camp Factsheet,” UNHCR, August 2015, https://data2.unhcr.org/en/documents/download/44865; Muath Freij, “Two hypermarkets offer Zaatari residents variety of foodstuff,” Jordan Times, February 2014, http://www.jordantimes.com/news/local/twohypermarkets-offer-zaatari-residents-variety-foodstuff; Deborah Amos, “A Syrian Refugee Camp With Girl Scouts And A Safeway Store,” NPR, May 2014, http://www.npr.org/sections/parallels/2014/03/17/290846823/a-syrianrefugee-camp-with-girl-scouts-and-a-safeway-store. 18. Paul Absalon, “Workshop teaches Tuareg artisans new skills in exile,” UNHCR, May 2016, http://www.unhcr.org/ en-us/news/latest/2016/5/5729bc956/workshop-teaches-tuareg-artisans-new-skills-exile.html. 19. Some hotel chains have initiatives to train and hire refugees and could explore extending them to refugees in developing countries. For example, Starwood Hotels and Resorts Worldwide, LLC, a subsidiary of Marriott International, partners with the International Rescue Committee in 19 US cities to train and hire refugees. The company is also piloting a hospitality training program in Dallas and San Diego. Adele Peters, “Refugees Wanted: Meet The Companies Creating Jobs For The Displaced,” Fast Company, September 2016, https://www. fastcompany.com/3063077/refugees-wanted-meet-the-companies-creating-jobs-for-the-displaced. 20. Samuel Wendel, “ReBootKamp initiative gives Syrian refugees access to tech-education,” wamda, January 2016, https://www.wamda.com/memakersge/2016/01/rebootkamp-syrian-refugees-access-tech-ed. 21. [Forthcoming report] International Rescue Committee and Western Union, [Title TBC], 2017. 22. [Forthcoming report] Abigail Hunt, Emma Samman, and Dina Mansour-Ille, “Syrian women refugees in Jordan: Opportunity in the gig economy?” 2017.

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23. Occo Roelofsen and Paul Sheng, “Africa’s path to growth: Sector by sector -- Oil and gas: New sources of growth,” McKinsey & Company, 2010, http://www.mckinsey.com/global-themes/middle-east-and-africa/africas-path-togrowth-sector-by-sector; British Petroleum, [live webpage] “About BP in Southern Africa: South Africa,” British Petroleum, 2017, http://www.bp.com/en_za/southern-africa/bp-in-southern-africa/south-africa.html. 24. World Bank Group, “Women in the Supply Chain,” World Bank Group Energy & Extractives, 2014, https://olc.worldbank.org/sites/default/files/WB_Nairobi_Notes_3_RD3.pdf. 25. UNHCR, “Update on budgets and funding for 2016 and 2017,” UNHCR, 2016, http://www.unhcr.org/58ca4fc27.pdf. 26. Sixty-six percent of respondents of GIIN Annual Survey 2017 targeted risk-adjusted market-rate returns while 18 percent principally sought below market-rate returns (closer to the market rate). Sixteen percent of respondents sought below market-rate returns closer to capital preservation. Abhilash Mudaliar, Hannah Schiff, Rachel Bass, and Hannah Dithrich, “Annual Impact Investor Survey,” GIIN, May 2017, https://thegiin.org/assets/GIIN_ AnnualImpactInvestorSurvey_2017_Web_Final.pdf. 27. The accompanying rise of tension among the Somali, Kenyan, and Asian communities highlights the importance of policy and program measures that facilitate improved relations to the extent possible. Farah Abdulsamed, “Somali Investment in Kenya,” Chatham House, March 2011, https://www.chathamhouse.org/sites/files/ chathamhouse/public/Research/Africa/bp0311_abdulsamed.pdf. 28. Vijaya Ramachandran, “Another Side to the Story: Syrian Refugees Have Invested over $300 Million in the Turkish Economy,” Center for Global Development, August 2017, https://www.cgdev.org/blog/another-side-story-syrianrefugees-have-invested-over-300-million-turkish-economy; Selen Ucak, “Another Side to the Story: A market assessment of Syrian SMEs in Turkey,” Building Markets, July 2017, http://buildingmarkets.org/sites/default/files/ pdm_reports/another_side_to_the_story_a_market_assessment_of_syrian_smes_in_turkey.pdf. 29. Sari Pekkala Kerr and William R. Kerr, “Immigrant Entrepreneurship,” National Bureau of Economic Research, July 2016, http://www.nber.org/papers/w22385; Peter Vandor and Nikolaus Franke, “See Paris and...found a business? The impact of cross-cultural experience on opportunity recognition capabilities,” Journal of Business Venturing, July 2016, http://www.sciencedirect.com/science/article/pii/S0883902616300052. 30. Kavya Raman, “Market Overview: Small & Medium Enterprises in Beirut & Mount Lebanon,” Building Markets [for the International Rescue Committee], February 2016, http://buildingmarkets.org/sites/default/files/irc_and_ building_markets_sme_market_overview_february_2016.pdf; Selen Ucak, “Another Side to the Story: A market assessment of Syrian SMEs in Turkey,” Building Markets, July 2017, http://buildingmarkets.org/sites/default/files/ pdm_reports/another_side_to_the_story_a_market_assessment_of_syrian_smes_in_turkey.pdf. 31. Populations impacted by crisis and disasters may face impediments to accessing financial services, including due to assumptions of service providers that affected persons are a flight risk. Mayada El-Zoghbi, Nadine Chehade, Peter McConaghy, and Matthew Soursourian, “The Role of Financial Services in Humanitarian Crises,” CGAP, SPF, World Bank Group, April 2017, http://www.cgap.org/sites/default/files/Forum-The-Role-of-Financial-Services-inHumanitarian-Crises_1.pdf.

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32. Centre for Research on the Epidemiology of Disasters, “The Human Cost of Natural Disasters: A Global Perspective,” Centre for Research on the Epidemiology of Disasters and UN Office for Disaster Risk Reduction, March 2015, http://reliefweb.int/report/world/human-cost-natural-disasters-2015-global-perspective. 33. More than 75 percent of adults who live in countries that are coping with humanitarian crises remain outside the formal financial system. Forty-five percent of adults in countries with humanitarian crises saved money in the past year; only 7.6 percent report having saved at a formal financial institution. Mayada El-Zoghbi, Nadine Chehade, Peter McConaghy, and Matthew Soursourian, “The Role of Financial Services in Humanitarian Crises,” CGAP, SPF, World Bank Group, April 2017, http://www.cgap.org/sites/default/files/Forum-The-Role-of-Financial-Services-inHumanitarian-Crises_1.pdf. 34. The internet is accessible to only about 35 percent of people in developing countries. In the UN-designated least developed countries (LDCs), over 90 percent of people are without any internet connectivity. Globally, refugees are 50 percent less likely than the general population to have an internet-enabled phone, and 29 percent of refugee households have no phone at all. UNHCR, “Connecting Refugees,” UNHCR, September 2016, http:// www.unhcr.org/5770d43c4.pdf; Broadband Commission for Digital Development, “The State of Broadband 2015,” Broadband Commission for Digital Development, September 2015, http://www.broadbandcommission.org/ Documents/reports/bb-annualreport2015.pdf. 35. Mayada El-Zoghbi, Nadine Chehade, Peter McConaghy, and Matthew Soursourian, “The Role of Financial Services in Humanitarian Crises,” CGAP, April 2017, http://www.cgap.org/sites/default/files/Forum-The-Role-ofFinancial-Services-in-Humanitarian-Crises_1.pdf. 36. Alexander Betts, Josiah David Kaplan, Louise Bloom, and Naohiko Omata, “Refugee Economies: Rethinking Popular Assumptions,” Humanitarian Innovation Project, University of Oxford, June 2014, https://www.rsc.ox.ac.uk/ files/files-1/refugee-economies-2014.pdf. 37. Mayada El-Zoghbi, Nadine Chehade, Peter McConaghy, and Matthew Soursourian, “The Role of Financial Services in Humanitarian Crises,” CGAP, April 2017, http://www.cgap.org/sites/default/files/Forum-The-Role-ofFinancial-Services-in-Humanitarian-Crises_1.pdf. 38. Based on the scope of the report, developed countries were excluded. Several countries were excluded on the basis of active conflict, sanctions, or other factors (e.g., a minimal overlap between refugee location and global business presence) that would significantly limit engagement with global businesses. China was excluded because the vast majority of refugees are well integrated. Countries excluded, followed by number of refugees under UNHCR and UNRWA mandate and reason for exclusion, are: Islamic Republic of Iran: 979,435 (sanctions); Germany: 669,482 (developed); Syria: 562,823 (conflict); Sudan: 421,466 (conflict); China: 317,255 (according to UNHCR, the vast majority of refugees are well-integrated and in practice receive protection from the government); France: 304,546 (developed); United States of America: 272,959 (developed); Yemen: 269,783 (conflict); South Sudan: 262,560 (conflict); Sweden: 230,164 (developed); Russian Federation: 228,990 (limited global business opportunity in refugee areas); Niger: 166,093 (limited global business opportunity in refugee areas); Italy: 147,370 (developed); United Kingdom: 118,995 (developed); Netherlands: 101,744 (developed); Canada: 97,332 (developed); Algeria: 94,232 (limited global business opportunity in refugee areas); Austria: 93,250 (developed); Switzerland: 82,681 (developed).

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